Steel Min to spend Rs 70,000 cr on modernisation of PSUs

SHIMLA: Steel Minister Virbhadra Singh today said Rs 70,000 crore would be spent by his ministry on moderanisation and expansion programmes of three PSUs - SAIL, RINL, NMDC.

The expansion programes aimed at doubling their annual production capacity by 2011-12.

Unfolding the 100-day agenda of steel ministry here, he told reporters that accelerating the pace of steel capacity addition both in public and private sectors is a priority.

"It will be our endeavour to see that the 124 MT (annual production) capacity (of steel) by 2011-12 is realised by way of policy facilitation and various coordination efforts with the concerned state and the Centre," he added.

With the steel companies looking to increase prices of their products on the back of firm global cues, the minister said the rate hike was not justified.

"No doubt the steel industry is facing slump due to less consumption," Singh said, but added that there was no justification in increasing steel prices. He asked the public and private producers not to increase prices.

Replying to a question, Singh said the process of merger of Maharashtra Elektrosmelt with SAIL would be completed by the end of FY2010 and added post merger Rs 250 crore would be invested to enhance its capacity.

He said a proposal for restructuring the state-run firms collectively called the 'Bird Group of Companies' is under consideration.